BNM issued the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Policy for digital currencies (Sector 6). It considered feedback received during public consultation period on the exposure draft released on December 14, 2017. The policy aims to ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currency activities in Malaysia.
BNM received feedback from representatives of existing digital currency exchangers, industry associations, law firms, financial institutions, academia, and other interested individuals. Feedback received from respondents mainly focused on the obligations imposed on digital currency exchangers, including businesses providing intermediary services involving digital currencies. BNM wishes to reiterate that the invocation of reporting obligations on digital currency exchange business does not in any way connote the authorization, licensing, endorsement, or validation (by BNM) of any entities involved in the provision of digital currency exchange services. Where relevant, these matters have been further elaborated in the policy document.
The public is reminded that digital currencies are not legal tender in Malaysia. Accordingly, digital currency businesses are not covered by prudential and market conduct standards or arrangements that are applicable to financial institutions regulated by BNM. Members of the public are advised to carefully evaluate the risks associated with dealings in digital currencies. Any persons carrying on activities involving digital currencies should refer to the details within the policy to determine its applicability and comply accordingly. Persons covered under the policy as reporting institutions are expected to comply with the provisions of the Companies Act 2016, including the requirement to be incorporated or registered. BNM will continue to monitor developments in this area through data submissions and may publish information that is relevant to inform the public on risks associated with digital currency activities.
Related Link: Press Release
Effective Date: February 27, 2018
Keywords: Asia Pacific, Malaysia, Banking, AML/CFT, Digital Currencies, Policy, BNM
Previous ArticleAPRA Revises Prudential Standard on Public Disclosures
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
Financial policymakers and international standard-setters met virtually with private-sector executives to discuss international policy responses to COVID-19 pandemic.
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA published thematic note presenting a preliminary assessment of the impact of COVID-19 outbreak on the banking sector in EU.
HKMA published a circular, addressed to authorized institutions, on the application of the Basel Committee guidance on certain COVID-related measures.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
PRA published final policy (in PS13/20) setting out the approach and expectations for authorization and supervision of insurance special purpose vehicles (ISPVs or insurance SPVs).
BoE published version 2.0.1 of the Capital+ XBRL Utility, along with the related release notes.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.